Factors And Effects Of Internet Finance Development Based On Diamond Model

Supported by Internet technologies such as big data and cloud computing,modern information technology is developing rapidly and is gradually penetrating into all aspects of daily social life,bringing earth-shaking changes to the lives of residents.Essentially,Internet finance is still finance,and its attributes as payment settlement and financial circulation have not changed.It pays more attention to customer experience,reduces transaction costs and time costs,and significantly improves the efficiency of capital allocation.Internet finance is the product of continuous innovation and upgrading of the financial industry,but also an inevitable trend to adapt to the development of the times.Internet finance can develop in our country,in fact,it is the result of many factors.Based on Porter's diamond model theory,this paper discusses the reasons that affect the development of Internet finance in China from six aspects: production,demand,competition,auxiliary industry,opportunity and government.Selecting the data from 2006 to 2016,this paper makes an empirical analysis of the specific factors affecting the development of Internet finance in China by using the method of entropy.The results are as follows: Weight analysis of factors shows that demand factor is the most important factor affecting the development of Internet finance,followed by production factor,and government factor has the least influence on the development of Internet finance.From the perspective of contribution degree of influencing factors in different years,the contribution degree of each influencing factor varies with the years.In the first few years,the influence of production factor is greater.In recent years,demand factor is our country.At the same time,it can not be ignored that the factors of opportunity play an obvious role in promoting the development of Internet Finance in China.Governments and enterprises should be good at seizing opportunities,complementing the advantages of traditional finance and Internet finance,innovating their own financial development model,and promoting the integration of the two styles.The indicators of education years and the scale of online payment users have great influence on Internet finance,while the growth rate of cable length,the proportion of mobile Internet users and the number of websites have little influence on Internet finance.From the point of view of the contribution of indicators in different years,the policy environment,the proportion of loan demand of small and medium-sized enterprises,the average per capita disposable income and average years of education have mutual influence in China.The different development stages of networked finance play a vital role.With the rapid development of Internet finance,it has brought both positive and negative effects.On the one hand,Internet Finance optimizes the process of resource production,distribution,exchange and consumption,creates a new mode of credit business growth for capital accommodation and investment consumption,and promotes the economic development of our country.On the other hand,risks are always accompanied by the development of new things.In addition to the risks of traditional financial institutions,Internet financial risks also show certain characteristics.If these risks can not be dealt with in time,a series of chain reactions may occur,which will have a huge impact on the stability of our financial system.Under the current level of economic development,it is of great significance to analyze the factors affecting the development of Internet finance in China,to explore the effects of Internet finance,and to alleviate the negative risks in the development of Internet finance,so as to better promote the healthy,stable and sustainable development of Internet finance.These are all issues to be studied in this paper,and it is worth exploring.